Take Charge Europe: Why Businesses Back EU’s 2035 EV Goal
The European Union is undertaking a review of its CO₂ regulations for vehicles, which is the legislative framework directing the phase-out of new car sales that produce emissions by 2035.
This review comes after the EU increased its 2030 emissions reduction target from 40%, a goal agreed upon in 2014, to a more ambitious 55% in 2023.
In response, more than 150 European companies and business leaders have issued a joint call to the European Commission.
They are urging officials to uphold the 2035 deadline for phasing out new petrol and diesel vehicles warning that any hesitation could jeopardise investments, employment and the continent's industrial leadership in a rapidly evolving automotive sector.
The European Environment Agency has also outlined that emissions from new cars must decrease by 55% and new vans by 50% when compared with 2021 figures.
The open letter addressed to President Ursula von der Leyen and organised by E-Mobility Europe argues that the 2035 deadline is a critical factor for Europe's competitiveness in the global EV market.
Protecting European investment and jobs
The existing legislation has already stimulated substantial economic activity with investments totalling hundreds of billions of euros.
This has led to the creation of more than 150,000 jobs across the European Union from the development of battery gigafactories in France and Germany to the establishment or modernisation of car manufacturing plants in Slovakia and Belgium.
The letter highlights the risk of falling behind international competitors.
"Signatories warn that weakening the target would hand long-term advantage to competitors such as China which has moved faster and with greater strategic focus on electrification," the letter writes.
This concern is highlighted by forecasts from the International Energy Agency which projects that one in every four cars sold globally this year will be electric demonstrating the swift pace of the transition.
Corporate giants advocate for electrification
A diverse group of major corporations has endorsed the letter signalling broad support for the transition to electric mobility.
Alongside energy providers, charging infrastructure companies and material suppliers, major corporations have backed the letter including:
- ABB E-mobility
- Uber
- Volvo
- IKEA (Ingka Group)
- Vattenfall
- Iberdrola
- Samsung SDI
- LG Energy Solution
- Octopus Energy
- Polestar
- Wallbox
- Fastned
- ChargePoint
- AstraZeneca.
The central message from these business leaders is direct: “Stand firm, don’t step back. Maintain the full integrity of the 2035 zero-emissions target for cars and vans in your upcoming review. Back it up with stronger action to secure Europe’s industrial leadership in the electric age.”
This reflects a consensus that the groundwork for this industrial change including building better EVs expanding charging networks and sourcing materials responsibly is already in progress.
The reskilling of the workforce and strengthening of power grids are also identified as key components of this change.
"Ambition must now be better matched by action," writes Chris Heron, Secretary General of E-Mobility Europe, on LinkedIn.
A call for a clear industrial strategy
To facilitate Europe’s transition to EVs the coalition of businesses has put forward four main priorities.
These are intended to guide policy and ensure a smooth and effective move away from fossil fuels.
- A stronger industrial strategy to increase battery production and secure necessary raw materials
- Smart and consistent incentives across all EU member states to encourage consumer adoption of EVs
- An acceleration of grid investment and reform of permitting processes to speed up the construction of charging infrastructure
- The effective implementation of existing EU legislation to create a unified and efficient single market.
According to the letter, indecision over the 2035 target could threaten not only Europe’s industrial competitiveness but also its climate objectives and energy security.
Conversely a firm commitment to the deadline could solidify Europe's position as a leader in clean mobility fostering high-quality jobs and achieving long-term sustainability goals.
